NEED HELP WITH REQ 3. I am not coming up with the correct answer.

Joyner Companys income statement for Year 2 follows:

Sales	$	707,000
Cost of goods sold		68,000
Gross margin		639,000
Selling and administrative expenses		217,000
Net operating income		422,000
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		431,000
Income taxes		172,400
Net income	$	258,600

Its balance sheet amounts at the end of Years 1 and 2 are as follows:

	Year 2			Year 1
Assets
Cash	$	215,300		$	79,100
Accounts receivable		273,000			146,000
Inventory		320,000			272,000
Prepaid expenses		9,000			18,000
Total current assets		817,300			515,100
Property, plant, and equipment		622,000			514,000
Less accumulated depreciation		165,900			131,100
Net property, plant, and equipment		456,100			382,900
Loan to Hymans Company		43,000			0
Total assets	$	1,316,400		$	898,000
Liabilities and Stockholders' Equity
Accounts payable	$	313,000		$	267,000
Accrued liabilities		46,000			52,000
Income taxes payable		85,600			81,000
Total current liabilities		444,600			400,000
Bonds payable		208,000			115,000
Total liabilities		652,600			515,000
Common stock		341,000			288,000
Retained earnings		322,800			95,000
Total stockholders' equity		663,800			383,000
Total liabilities and stockholders' equity	$	1,316,400		$	898,000

Equipment that had cost $31,500 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $29,200. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.

Required:

1. Using the indirect method, compute the net cash provided by/used in operating activities for Year 2.

2. Prepare a statement of cash flows for Year 2.

3. Compute the free cash flow for Year 2.